FAFSA Simplification

Changes to the application and data collection process are expected to improve and streamline user experience. A high-level summary of changes related to the application, and analysis of the information collected, includes:   

• The number of questions asked on the FAFSA has been reduced.
• Anyone who is required to provide information on the FAFSA is referred to as a Contributor. All contributors will need their own Federal Student Aid (FSA) ID. For dependent students from divorced/separated families, there has been a change as to which parent is required to provide information on the FAFSA as a Contributor.  There will be a tool for the students to use through the process to determine which parent(s) should be invited as a contributor. 
• Federal tax information (FTI) requested in the FAFSA will be received directly from the Internal Revenue Service (IRS) for U.S. taxpayers through a Direct Data Exchange process. All contributors must give consent to have their FTI transferred from the IRS for the student to be eligible for federal, state and institutional need-based aid.
• The Student Aid Index (SAI) will replace the Expected Family Contribution (EFC).
• Access to the Federal Pell Grant has been expanded with eligibility linked to adjusted gross income (AGI), family size and federal poverty levels, as well as SAI in certain scenarios.
• The Student Aid Report (SAR) that students receive upon submission of their FAFSA will now be called the FAFSA Submission Summary.

The Student Aid Index (SAI) will replace the Expected Family Contribution (EFC) as of the 2024-2025 award year. The SAI reflects an evaluation of a student’s approximate financial resources to contribute to the student’s post-secondary education for an academic year.

Notable changes to the federal SAI methodology include the following: 

• The new formula allows a minimum SAI of negative $1,500 to give more insight when making determinations for a student’s aid.
• The number of children in college is not considered in the SAI calculation.
• The formula reduces the number of data items and allowances against income, with untaxed income data items being removed from the FAFSA.
• Allowances (amounts subtracted) against assets will be based on the age of the older parent in two parent households.
• Annual child support received will now be an asset and reported based on the last complete calendar year. Which year is used will be based on when the FAFSA is completed. For example, if the FAFSA is completed in December 2023 when it opens, child support received would be reported from 2022 totals. But, if the FAFSA was completed in 2024, the child support received would be reported from 2023 totals.
• Business net worth will now be reported regardless of the size of the business.
• Family Farm net worth will now be reported, except for the part of the farm that is the family’s primary residence, which should be deducted from the total net worth (more guidance will be given by the Department of Education on this calculation with the 2024-2025 FAFSA directions).
• The applicant’s family size will be based on the tax data used for the FAFSA application and downloaded directly from the IRS. The Contributor will have the ability to update the family size if the number has changed since the tax year of the federal tax information (FTI) being downloaded. (Note: The tax information downloaded for each contributor will be based on the prior-prior tax year, which is consistent with the current practice. For 2024-2025, it would be two years back from the base year of 2024, which would be the 2022 tax year.) 
• The contributing parent providing consent for the tax data being used in the calculation has changed and is no longer the parent the student lives with most, but instead the parent who provides most financial support.  There will be a tool for the students to use through the process to determine which parent(s) should be invited as a contributor. 

The Act introduced the new term Contributor, which refers to anyone who is required to provide information on the FAFSA form. For dependent students, this includes the student and the student’s parent(s) (biological, adopted and/or step-parent if applicable). For independent students, this includes the student and the student’s spouse if applicable.

All Contributors must have a Federal Student Aid (FSA) ID to log in and complete their portion of the FAFSA application. It is highly recommended that each contributor creates their FSA ID before the launch of the 2024-2025 FAFSA Application in December of 2023, to help streamline completing the form once it is available.

Contributors are required to give consent to have their federal tax information (FTI) transferred from the IRS. Consent authorizes direct access and disclosure of IRS data and allows for disclosure of that information to state entities, institutions and scholarship organizations. If any contributor refuses to give consent, the student will be ineligible for federal, state, and institutional need-based financial aid.

Special Note:  For situations where the tax return was filed jointly (i.e. biological and/or step-parents filed “married filing jointly”) in the prior-prior year, only one parent would need to establish an FSA ID to provide consent. For independent students who are married, if they filed jointly with their spouse in the prior-prior year, only the student will need to consent. However, if the filing status was “married filing separate,” or if the Contributors originally filed single in the prior-prior year, but are now married, both parties would need an FSA ID and need to provide consent.  There will be a tool for the students to use through the process to determine which parent(s) should be invited as a contributor. 

For students from divorced/separated households, the law has changed as to which parent is to complete the FAFSA. The law now requires the parent who provided the greater portion of the student’s financial support during the prior 12 months to complete the FAFSA. The new FAFSA application will have a “Who is my parent?” wizard tool to assist students in determining which parent should be included as a contributor. If the parent who provides the greater financial support has remarried, the step-parent’s information must also be included. In the case where both parents provided equal support, then the parent with the greater income will be the required contributor on the FAFSA.

Housing Assignments:

The housing question has been removed from the 2024-2025 FAFSA. Starting with the 2024-2025 academic year, incoming undergraduate students will be assigned an on-campus cost of attendance budget during their first year unless the student has an approved waiver on file to live off campus. In following years, students will be assigned an off-campus cost of attendance budget unless our office is notified that the student is living on campus.

Federal Work-Study (Student Employment): 

The work-study interest question has been removed from the 2024-2025 FAFSA. Students who have demonstrated need (Cost of attendance – Student Aid Index – Other Financial Assistance > $0) will be offered federal work-study (FWS) as part of their financial aid offer. For students interested in accepting the offer, the acceptance process remains the same through BearWeb. The job application, interview and selection processes also remain the same. To learn more about student employment please visit studentemployment.web.baylor.eduhttps://studentemployment.web.baylor.edu/.

Cost of Attendance Components:

The Act has changed some terms used in cost of attendance information, as well as added the ability to receive additional budget consideration for some components related to cost of attendance.

• Room will now be referred to as “Housing” on the cost of attendance information.
• Board will now be referred to as “Food” on the cost of attendance information.
• Additional provisions have been added to allow for increased cost of attendance budget considerations for costs associated with a professional licensure, certification, or a first professional credential if paid for during a term of enrollment, as well as reasonable allowances for books, course materials, supplies, and equipment that may be unique to a student’s course of study.

The 2024-2025 FAFSA will not be available until December, but you can take the following steps to prepare:

1. Create an FSA ID for yourself and encourage any contributors, such as your parent(s) or spouse, on the Federal Student Aid website to create their FSA ID.  There will be a tool for the students to use through the process to determine which parent(s) should be invited as a contributor. 
2. If you have not already, create an account in Navigate. Our office will be sending information monthly on different FAFSA topics. (Only available to currently enrolled Baylor students).
3. Check this FAFSA Simplification page often for updates. We will keep this page up to date with the latest information.
4. Complete the FAFSA as soon as it opens in December.